Civic body proposal could send property prices in city soaring | mumbai | Hindustan Times
Today in New Delhi, India
Mar 24, 2017-Friday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Civic body proposal could send property prices in city soaring

mumbai Updated: Jul 20, 2011 00:52 IST
Dharmendra Jore

Civic chief Subodh Kumar has floated a proposal, which would allow builders to legally charge you extra for areas such as the staircase, lift lobby, lofts, veranda and flowerbeds.

Kumar has suggested that areas which were exempted from the Floor Space Index (FSI) calculation, should now be included and sold at a premium. He contended that builders anyway put these areas to residential, commercial or industrial use and this way, the Brihanmumbai Municipal Corporation (BMC) could earn more revenue.

For residential buildings, Kumar wants the premium to be 100% of the ready reckoner rates. Currently, the builders pay 25% premium for staircase and lift lobby, while the other areas are absolutely free of FSI. Obviously, such a provision will send real estate prices northward.

“Builders will come up with any kind of proposal and the BMC chief will approve them for a hefty premium. The builders will then transfer this cost to consumers,” said an official from the Mantralaya. “BMC chief told the chief minister that the builders associations were ready to accept the new proposal.”